Apple (NASDAQ:AAPL) stock has been a wild mover in recent sessions, blasting off on excitement for AI-centric M4 Macs, only to plunge in the following sessions.
Indeed, Apple’s prior chips featured Neural Engines that helped power various background applications. However, many iPhone users probably viewed the hardware as an afterthought rather than a main draw to buy the latest iPhone.
After exploring the possibilities with today’s AI chatbots (like ChatGPT), its AI-focused hardware, such as the Apple Neural Engine, may now be a top selling point as Apple looks to get its many users to upgrade. As AI PCs, smartphones and the AI-powered silicon that powers them enter the chat, things may finally look up for Apple again.
If Apple has what it takes to catch up in AI, the following AI stocks may benefit from its success.
Qualcomm (QCOM)
Apple hasn’t been able to replace Qualcomm (NASDAQ:QCOM) modems in its iPhone quite yet. With Apple and Qualcomm extending its modem supply agreement to 2026 and now to March 2027, questions linger as to whether Apple can ever move on from Qualcomm on the modem front.
Who knows? Perhaps the overly ambitious modem plans could share the same fate as Project Titan, the electric vehicle project that Apple has since pulled the plug on.
In any case, Qualcomm will be supplying modems for the next couple of iPhones. That will likely be enough to benefit from the next iPhone (mini) super-cycle that may very well be powered by new AI hardware, software and services. Beyond Apple, Qualcomm looks well-equipped to benefit from the AI PC and smartphone boom as it makes its own AI chips.
In short, Qualcomm stands to gain if the iPhone 16 or 17 experiences a big boom in demand, likely from new AI features. That said, it doesn’t solely rely on Apple for its prosperity.
Taiwan Semiconductor (TSM)
Taiwan Semiconductor (NYSE:TSM) stock is in the process of breaking out right now, with shares just shy of the $140 mark. If Apple helps lead the charge toward AI-powered smartphones, Taiwan Semiconductor may have the final nudge to leave prior highs well behind it.
Further, Taiwan Semiconductor doesn’t just stand to benefit from an iPhone super-cycle; it stands to benefit from an AI phone boom at large. The $725 billion foundry juggernaut is already showing signs of tailwinds from the AI chip boom, with the firm recently experiencing a sales growth spurt in March, its largest since November 2022.
At this pace, it’s hard not to view TSM stock as one of those AI-at-a-reasonable-price types of plays as more investors move on from some of the more overcrowded AI trades in the market.
Skyworks Solutions (SWKS)
Skyworks Solutions (NASDAQ:SWKS) is a major supplier to Apple, with more than half (sometimes much more than half) of overall revenues derived from the iPhone maker. Indeed, the mobile chip maker’s heavy reliance on Apple can be both a blessing and a curse. Of late, it’s been a curse, with SWKS stock down nearly 50% from its peak, with barely any meaningful momentum for rebound chasers to get excited about.
If we are on the cusp of an AI iPhone sales boom, perhaps Skyworks stock could gain more than Apple stock. Undoubtedly, Skyworks has taken steps to lower its dependence on Apple over the years. Still, Apple remains the largest customer, which will help the firm pay most of the bills. If AI does help spark a much-awaited iPhone sales super-cycle, perhaps Skyworks’ heavy dependence on Apple will be viewed as a good thing for once.
On the date of publication, Joey Frenette owns shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.